Power of Attorney of Property
Contents
Unraveling the Role of Power of Attorney of Property: A Comprehensive Guide
Understanding the intricacies of power of attorney (POA) of property is crucial for anyone considering this legal arrangement. In this comprehensive guide, we explore what power of attorney of property entails, how it works, its practical applications, and special considerations.
Deciphering Power of Attorney of Property
Power of attorney of property is a legal document that grants an attorney or agent the authority to manage and access the principal's property in the event the principal becomes incapacitated or unable to handle their affairs independently.
How Power of Attorney of Property Works
This arrangement typically encompasses all assets owned by the principal, including real estate, bank accounts, stocks, and other investments. The terms and extent of authority granted to the agent are established when the document is created, outlining what can and cannot be managed.
Key Takeaways
- In real estate transactions, POA of property can be utilized by individuals residing abroad who are unable to be physically present.
- Assets such as real estate, stocks, bonds, and bank accounts fall under the purview of power of attorney of property.
- The presence of two witnesses is required for the signing of a power of attorney of property to be valid.
Application in Practice
Power of attorney of property is commonly invoked in situations where the principal is incapacitated or unable to make decisions regarding their assets, such as during hospitalization or medical treatment. It can also be utilized for specific transactions, like real estate closings, in the principal's absence.
Special Considerations
Granting power of attorney of property requires the principal to be of legal age, mentally competent, and fully aware of the authority being conferred to the agent. While the agent is expected to act in the principal's best interests, there are no guarantees beyond the terms specified in the document.